Slide 1: Third Quarter 2012 Presentation
Third Quarter 2012 Presentation 0
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication contains forward-looking statements. Forward-looking statements provide Global Ship Lease’s current expectations or forecasts of future events. Forward-looking statements include statements about Global Ship Lease’s expectations, beliefs, plans, objectives, i
Slide 3: Disclaimer
Disclaimer The financial information and data contained in this communication is unaudited and does not conform to the U.S. Securities and Exchange Commission Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, Global
Slide 4: Global Ship Lease: Q3 2012 Highlights
Global Ship Lease: Q3 2012 Highlights Continued to generate stable revenues and cash flows: Reported revenue of $39.5 million for third quarter 2012 Generated Adjusted EBITDA of $26.9 million for third quarter 2012 Excluding non-cash mark-to-market gain, normalized net income was $6.9 million
Slide 5: Robust Performance Throughout the Cycle
Robust Performance Throughout the Cycle 250 Timecharter Rate Index Average Jan-2008 Through Sep-2012 Market Timecharter Index 200 Market Cycle 150 100 50 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q ‘08 ‘08 ‘08 ‘08 ‘09 ‘09 ‘09 ‘09 ‘10 ‘10 ‘10 ‘10 ‘11 ‘11 ‘11 ‘11 ‘12 ‘12 ‘12 Fleet at Q-
Slide 6: Fleet and Charter Portfolio: Significant Forward Coverage
Fleet and Charter Portfolio: Significant Forward Coverage Average remaining contract term of 7.6 years on a weighted basis Contracted revenue of $1.1 billion Secured new time charters for two ships that came off lease on September 20 and 21, 2012: • New charters at $9,962 per day with CMA CGM
Slide 7: Pricing Discipline has Improved Environment for Liner Operators
Pricing Discipline has Improved Environment for Liner Operators Freight Rate Indices (ex-Shanghai) & Time Charter Rate Index Commentary 160 3Q2012 liner results published to date have shown the continued 140 positive impact of pricing discipline New capacity deployed on the Asia- Index (100 = Ja
Slide 8: Market Dynamics Shaped by Fundamentals over Long Term
Market Dynamics Shaped by Fundamentals over Long Term Year-Over-Year Growth (%) Time Charter Index 20% 300 16.6% 15% 13.8% 250 13.4% 13.1% 12.8% 12.0% 11.6% 11.4% 11.2% 11.4% 10.5% 10.5% 10.6% 10.8% 9.8% 9.7% 10% 8.8% 200 8.1% 7.1% 6.7% 6.7% 6.6% 6.7% 4.8% 5.2% 5.3% 5.3% 4.9% 4.6% 4.9% 4.8% 5% 3.6%
Slide 9: Mid-Size and Smaller Vessels Deployed in Higher Growth Trades
Mid-Size and Smaller Vessels Deployed in Higher Growth Trades 2011 Global Containerized Trade ~151 mm TEU Estimated Containerized Trade Growth, by Tradelane³ 12.0% 3.8% 10.0% 5.4% 7.8% 8.0% 4.8% Transpacific, 2.9% 14% 0.0% 6.0% -0.5% Other², 39% Far East- 4.0% Europe, 14% 2.0% 0.0% Transatlantic, Ot
Slide 10: Waiver of Loan-To-Value Test
Waiver of Loan-To-Value Test Insulated from asset volatility for two years Two-year waiver with next test scheduled for December 1, 2014 During the waiver period: – Fixed interest margin to be paid over LIBOR will be 3.75% – Prepayments are based on cash flow, subject to a $40 million minimum on
Slide 11: Financials
SF GLOBAL SHIP LEASE Financials
Slide 12: Financial Results (unaudited)
Financial Results (unaudited) Three months ended September 30, Nine months ended September 30, USD thousands 2012 2011 2012 2011 Operating Revenues Time charter revenue $ 39,454 $ 38,676 $ 117,037 $ 116,554 Operating Expenses Vessel operating expenses 11,196 11,750 34,073 34,047 Depreciation 10,144
Slide 13: Balance Sheet (unaudited)
Balance Sheet (unaudited) USD thousands September 30, December 31, 2012 2011 Assets Cash and cash equivalents $ 29,318 $ 25,814 Restricted cash 3 3,027 Accounts receivable 7,601 13,911 Prepaid expenses 734 726 Other receivables 754 839 Deferred tax - 19 Deferred financing costs 1,140 1,168 Total cur
Slide 14: Cash Flow (unaudited)
Cash Flow (unaudited) Three months ended Nine months ended September 30, September 30, 2012 2011 2012 2011 Cash Flows from Operating Activities Net income (loss) $ 8,343 $ (935) $ 23,807 $ (1,789) Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities Depreciation 10
Slide 15: Concluding Remarks
Concluding Remarks GSL business model and contract coverage insulate revenues from current challenging market: – All 17 vessels secured on charters with two expirations in May of 2013 and no further expirations until 2016 – Contracted revenue stream of $1.1 billion with weighted average remaining
Slide 16: Global Ship Lease
GLOBAL SHIP LEASE